Decision Maker: Cabinet Member for Resources
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
The Cabinet Member:
1. Approved a grant of £6.385m to Medesham Homes LLP, funded from Right to Buy Receipts, and S106 receipts to enable the provision of 42 affordable homes in Peterborough
2. Delegated authority to the Head of Sustainable Growth Strategy to replace some of the Right to Buy Receipts with S106 Affordable Housing Commuted sums
3. Delegated to the Director of Law and Governance the authority to finalise and put in place any agreements and legal documentation necessary to give effect to these proposals, in consultation with the Corporate Director of Growth and Regeneration and the Acting Corporate Director, Resources.
On 25th July 2016, Cabinet approved Report JUL16/CAB/43 and resolved to
· Establish a joint venture Limited Liability Partnership with Cross Keys Homes (now known as Medesham Homes)
· Agree that future grants from Section 106 Planning Receipts will be approved by the Corporate Director - Growth and Regeneration, except where they are intended to be given to the Housing Joint Venture in which case they will be approved by the Head of Service - Sustainable Growth Strategy
· Note the allocation of the Right to Buy receipts for the Housing Joint Venture as per the budget approval decision by Full Council for 2016/17.
On 15th January 2018, Cabinet approved the Report JAN18/CAB/78 and resolved to approve in principle the funding mechanisms and processes for managing the investment of previously agreed funding into Medesham Homes LLP. Paragraph 4.4.2 of that report sets out the funding process to determine investment into Medesham Homes on a case by case basis.
In accordance with Paragraph 4.4.4 of the Cabinet report JAN18/CAB/78, a review group has assessed the scheme outline and the business case provided by Medesham Homes for this project at Bretton Court and has determined that it is acceptable. The business case is attached as Appendix 1
Section 8 of the Business Case refers to an analysis of costs and savings for PCC. This has been prepared by PCC and is attached at Appendix 2.
Continuing to provide temporary accommodation at the current rate is not sustainable for the Council nor is it sustainable for homeless households. These proposals seek to enable the Council to take greater control over the provision of accommodation for homeless households.
Do not award funding to Medesham Homes.
This option was discounted. Cabinet has allocated the Right to Buy receipts for the Housing Joint Venture subject to the submission of an acceptable business case.
The Council’s Medium Term Financial Strategy 2018/19.
Publication date: 17/12/2018
Date of decision: 17/12/2018
Effective from: 21/12/2018